Here are five things you must know for Tuesday, November 9:
1. -- Stocks Futures Mixed Amid Fed Leadership, Inflation Concerns
U.S. equity futures traded mixed Tuesday, with investors injecting a note of caution into the markets following last night's double-set of all-time highs, amid questions over leadership at the Federal Reserve and pace of inflation heading into the final months of the year.
The S&P 500 closed at an all-time high for the eighth consecutive session last night, extending the longest winning streak since 1997, as investors added the impact of $1 trillion in fresh government stimulus to their stock valuations.
Overnight reports that President Joe Biden has interviewed Fed Governor Lael Brainard for the top job at the central bank, which comes open early next year, however, injected caution into the markets, pulling U.S. Treasury yields lower and peeling back gains for equity futures ahead of factory gate inflation data at 8:30 am and another pre-recorded appearance from Fed Chairman Jerome Powell later in the session.
Futures contracts tied to the Dow Jones Industrial Average are indicating a 20 point opening dip while those linked to the S&P 500 are priced for a 1 point move higher from last night's record close of 4,701.70 points.
Futures tied to the tech-focused Nasdaq Composite are indicating a 30 point gain thanks in part to pre-market advances for AMD (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report as well as a pullback in 10-year Treasury note yields to 1.460%.
2. -- Robinhood Reveals Security Breach Details
Robinhood Markets (HOOD) - Get Robinhood Markets, Inc. Class A Report shares slumped lower in pre-market trading after the online trading group reveal a cybersecurity breach that may have affected more than 5 million customers.
Robinhood said the breach was caused by a 'unauthorized party' who "socially engineered a customer support employee by phone and obtained access to certain customer support systems" and was able to obtain the email address of 5 million customers, alongside the full names of a different group of 2million clients.
Only around 310 accounts had more personal information exposed, Robinhood said, adding no social security numbers or bank account details were ultimately revealed.
Robinhood shares were marked 3.2% lower in pre-market trading to indicate an opening bell price of $36.79 each.
3. -- PayPal Tops Q3 Earnings, Unveils Amazon Tie-Up
PalPay Holdings (PYPL) - Get PayPal Holdings, Inc. Report shares moved lower in pre-market trading after the payments group posted stronger-than-expected third quarter earnings but provided a tepid initial outlook for 2022 profits.
PayPal's adjusted earnings for the three months ending in September came in at $1.11 per share, topping Street forecasts by 4 cents, but revenue growth of 13%, to $6.18 billion, fell just shy of estimates, and its 2022 profit outlook of $6.26 per share disappointed investors, even as the group added in the impact of a partnership with Amazon (AMZN) - Get Amazon.com, Inc. Report that will allow customers to pay with Venmo, at the checkout, starting next year.
PayPal shares were marked 3.3% lower in pre-market trading to indicate an opening bell price of $221.80 each.
4. -- AMC Looks To NFTs After Q3 Loss
AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report shares slumped lower in pre-market trading after the movie theatre chain posted a narrower-than-expected third quarter loss while cautioning there are "more challenges ahead of us still to be met,"
AMC loss for the three months ending in September was 44 cents per share, just inside the Street forecast of 53 cents, although revenues improved to $763.2 million as movie-goers returned to cinemas amid rising COVID vaccinations and blockbuster releases.
CEO Adam Aron also unveiled plans to issue tradeable "NFTs" of key movie releases, but noted that "the virus continues to be with us" and acknowledged the need to boost post-pandemic ticket sales.
AMC shares were marked 4.9% higher in pre-market trading to indicate an opening bell price of $42.85 each.
5. -- Nvidia Unveils 'Metaverse' Tools
Nvidia shares jumped higher in pre-market trading after the chipmaker unveiled a new set of tools designed for software professionals developing programs for the so-called 'metaverse'.
Nvidia will market the tools, known as Omniverse Enterprise, through partners such as Dell Technologies and Lenovo Group, while leveraging its own chips in the development of the kind of three-dimensional world's expected in metaverse projects from social media giant Facebook FB.
"While the recent announcements from Facebook/Meta have put the attention on the topic, NVIDIA has been ahead of the curve and has been creating its Omniverse platform for enabling the metaverse in multiple industries," said BMO Capital Markets analyst Ambrish Srivastava. "We see the company as the key enabler and beneficiary of this technology."
Nvidia shares were marked 4.5% higher in pre-market trading to indicate an opening bell price of $321.80 each.